ACORE Capital lends $75m for Texas multifamily deal

The newly built apartment property is located in Frisco, Texas – a hot multifamily market.

Los Angeles-based ACORE Capital has originated a $75.3 million loan on behalf of TTI Capital, a Reston, Virginia-based real estate private equity firm, to fund the acquisition a residential property in Texas – one of the fastest growing markets in the country.

The first mortgage, mezzanine loan has a term of 60 months. It was arranged by brokerage firm IPA.

The Travis apartment property was built in 2021. It is located in Frisco, one of the fastest growing suburbs of the Dallas-Fort Worth metro and near the new PGA Headquarters – a $500 million master-planned development, which will be a major demand generator for the area.

“The Travis is a newer, high quality multifamily community in a growing area of Frisco, TX,” Kyle Jeffers, senior managing director, co-head of originations at ACORE Capital told Real Estate Capital USA.  “With the opening of the PGA headquarters and other new demand generators nearby, the value of multifamily assets should continue to increase, making this an excellent lending opportunity.”

TTI Capital plans sponsor to implement what it has described as “a light value-add plan”, which will involve upgrading 90 percent of its 345 units.

The property completed its lease-up in only seven months and is currently 96 percent occupied.